Margin Policy

Last updated: 23 Febuary 2018

Print

Operation of the Margin

You will be required to pre-collateralise your deliverable FX trading line at an amount to be agreed with us.  All margin liabilities for trades executed by you or your clients will be applied against the margin account. Our services cannot commence until the margin account has been funded into an account designated by us. If margin is not available in the margin account to cover the margin requirement, then the trade will not be executed.

Position Netting

All open trades executed by you or your clients will be netted to give the Net Open Position (NOP) exposure per currency pair (resolved into GBP).

Mark to Market

Your clients’ open positions will be marked to market giving rise to a Net Open Equity (NOE) adjustment (resolved to GBP).

Margin Requirements

At the time of a trade being executed by one of your clients, the margin requirement for the trade will be calculated as per the table below:

FX Product Margin Requirement
TOD, TOM, SPOT 3% of consideration value
Forwards up to 1 month 3% of consideration value
Forwards 1-6 months 5% of consideration value
Forwards 6-12 months 10% of consideration value

Margin Calls

The Margin Ratio (MR) is calculated as follows:  MR = margin deposit / (NOP + NOE).

In the event that your MR (inclusive of all of you and your clients transactions ) falls to 0.5%, we will call you for additional margin to take the MR back to a minimum of 3%, and you will have a maximum of 1 business day in which to pay this additional margin.

If no funds are posted by you within 1 business day (or proof of funds being sent is not provided by you), we will automatically close out your and your clients’ open trades so as to return the MR to a minimum of 3.0%. We have the right to close out the trades of our choice.

If at any time, the MR diminishes to 0.1%, we will automatically close out your and your clients’ open trades so as to return the MR to a minimum of 3.0%.We have total discretion on what trades are closed; however, we will make reasonable efforts to contact you before close out of any trades.

Latest Releases

PSD2 and GDPR: Conflicting regulations?

PSD2 came into force in January 2018, while the GDPR deadline is May. How can the two seemingly different regulations work together? This year marks the arrival of two important EU regulations that will impact the financial sector: The update to the general data...

Protecting data: Who must comply with EU GDPR?

The update to data protection regulation is coming. Who, exactly, needs to comply? There will be huge implications for anyone that does not adequately protect personal data when the EU update to data protection regulation (GDPR) comes into place in just three months’...

Open Banking: Ignore the mainstream media

Open Banking came into force on 13 January and was met with a caterwauling chorus of cynicism by the mainstream media. Hysterical headlines about hucksters andfraudsters were the order of the day, with claims that consumers are “fearful and confused” after an anaemic...